# Crypto Service Permissions: What Each Covers

> Authorisation is granted per activity. Which permission covers which service, and which one protects your balance.

- Source: https://thecoinreference.com/licensing-permissions-reference/
- Published: 2026-07-23
- Author: Reference Desk
- Publication: The Coin Reference — Facts, dates and numbers, kept current
- Topic: licensing
- Tags: licensing, permissions, reference

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| Permission | Covers | Matters when |
|---|---|---|
| Custody and administration of crypto assets | Holding assets on behalf of clients | A provider holds any balance for you |
| Operation of a trading platform | Running a venue matching orders | You trade on their book |
| Exchange of crypto assets for funds | Buying and selling against fiat | You convert to or from ordinary money |
| Exchange of crypto for other crypto | Converting between assets | You swap |
| Execution of orders on behalf of clients | Trading as your agent | They execute for you |
| Reception and transmission of orders | Routing your orders elsewhere | They pass orders to a venue |
| Transfer services | Moving assets on your behalf | They send on your instruction |
| Placing of crypto assets | Distribution | Rarely relevant to a user |
| Advice | Recommendations | They advise |
| Portfolio management | Discretionary management | They manage |

## The one that matters most

Custody and administration.

If a provider holds a balance for you without it, your assets are not protected by the client asset segregation rules you would otherwise rely on. These terms are used as defined here by providers operating inside the framework, such as [a platform operating under a MiCA-compliant framework](https://collectnexchange.cy/compliance/mica-regulation).

This is the most common gap. A provider authorised to exchange is genuinely authorised, and not for holding.

## Adjacent permissions

Client money terminology differs again, and [a provider serving funds and family offices](https://collectnexchange.cy/industries/funds-family-offices) publishes the relevant definitions.

| Permission | Covers | Relevant to |
|---|---|---|
| Payment institution | Executing payment transactions, holding funds for that purpose | Fiat held by a payment provider |
| Electronic money institution | Issuing e-money and holding balances | Card products, stored balances |

Both carry safeguarding obligations over relevant funds, distinct from crypto client asset segregation.

## Verification procedure

1. Obtain the authority name and registration number in writing
2. Search that authority's own public register
3. Confirm the entity name matches the contracting party in the terms of service
4. Read the list of permitted activities
5. Check for conditions, restrictions and enforcement history

Five minutes.

## The group structure question

One term worth establishing before it matters is whether [a crypto exchange with published fees](https://collectnexchange.cy/services/crypto-exchange) exists as a reachable contact.

Which legal entity will I contract with, and does that entity hold the authorisation.

Ask in writing. Protections attach to the authorised entity, not to the brand.

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This article explains how something works. It is not financial advice.
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